EUR/USD analysis: ECB´s Nowotny considering reducing QE "significantly"

Valeria Bednarik FXStreet

EUR/USD Current price: 1.2352

Hopes about the end of ECB's QE gave the common currency a lift.
EUR/USD poised to retest the strong resistance area around 1.2410.

Having traded uneventfully ever since the week started, the EUR/USD pair got a surprise boost this Tuesday from an ECB member, as Nowotny, a member of the Governing Council, said that, while the current bond-purchase program is set to continue until September this year, adding that "we will have to decide in summer what happens next." Furthermore, he said that if the conditions grant it, "we will have the possibility to reduce this programme significantly and head towards an end of the programme.” The EUR/USD pair jumped to 1.2377, holding now around 1.2350 ahead of the US opening. There were no major news coming from the EU, while the US published its March PPI, up 0.3% MoM and 3.0% YoY, well above market's expectations, yet not enough to trigger dollar's demand. The macroeconomic calendar has nothing more of relevance to offer today.

Technically, the pair's 4 hours chart shows that it has managed to surpass all of its moving averages, but with the 20 SMA gaining upward traction well below the 100 and 200 SMA, both still directionless and confined to a tight range. Also, technical indicators have accelerated higher, maintaining their bullish slopes at monthly highs and near overbought readings, indicating that the rally could continue, up to the 1.2410 region on a break above the mentioned daily high.

Support levels: 1.2335 1.2300 1.2250

Resistance levels: 1.2380 1.2410 1.2440

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.